Pengerang Energy Complex (PEC) has successfully negotiated financing terms for US$3.5 billion in project financing from top export credit agencies (ECAs) in Asia, Western and Southern Europe, and North America. Additionally, PEC has secured Islamic financing from Islamic Development Bank (IDB) entities.
The terms of the financing agreements were ratified in Kuala Lumpur by representatives of the five ECAs: the Export-Import Bank of the United States (US EXIM), Euler Hermes AG, Italian Export Credit Agency (SACE), Compañía Española de Seguros de Crédito a la Exportación (CESCE), Export-Import Bank of Malaysia Berhad (EXIM Bank Malaysia), and IDB. The Singapore-based petrochemicals, green energy, and natural resources conglomerate, ChemOne Group, is developing PEC.
Several prominent European and foreign banks also attended the occasion, confirming their involvement in both the Islamic finance and ECA-guaranteed tranches.
The funds would be used to build the latest-generation, low-carbon petrochemical facility worth US$5.3 billion. This facility is expected to produce 2.6 million metric tonnes per year (mmtpa) of aromatic products and 3.0 mmtpa of related energy products. Midway through 2025, building will begin, and the project will be operational by 4Q of 2028.
“We are pleased to have secured this significant round of project financing from these five leading global export credit agencies and Islamic Development Bank entities,” said Alwyn Bowden, CEO of Pengerang Energy Complex Sdn Bhd.
“We are pleased to have secured this significant round of project financing from these five leading global export credit agencies and Islamic Development Bank entities, which will help further bolster the financial stability of PEC and accelerate progress for the project which is already well underway in terms of planning and engineering.
“We are grateful for the confidence our partners have shown in this project, and the discussions held today will enable us to fully conclude the debt financing for the Project within the coming few months and move to commencement of construction for this Global benchmark setting project by the middle of next year.
“As the petrochemicals industry is set to grow exponentially, alongside rapid economic development across East Asia and Southeast Asia, the PEC project is poised to form a key driver of demand for quality aromatics in the medium to long term.
“PEC is strategically located to serve the regional Asian markets and satisfy forecast demand.”
Raymond Fam, Director of EXIM Bank Malaysia, said: “EXIM Bank Malaysia is proud to play a pivotal role in the financing of the Pengerang Energy Complex’s new facility, a landmark project that underscores Malaysia’s commitment to advancing low-carbon industrial innovation.
“This initiative aligns with our sustainability commitment and is instrumental in showcasing how global collaboration can drive transformative change in high-growth sectors like petrochemicals.
“Together with our international partners, we are enabling a state-of-the-art facility that not only enhances Malaysia’s economic resilience but also sets a benchmark for sustainable industrial practices in the region.”
